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Client Adding Ads; How Do I Charge?

This is an urgent question; I have a meeting with client tomorrow (March 13).

We are in the beginning stages of (finally) completely redesigning a website I created and have hosted and maintained for more than a decade.

The website is for a small, independent, boutique-type store selling a specific product. The website has always been only about the store, its owners (who are also well-known it the community), events they host, the products they sell, and special services they offer.

We've never had any ads on the website for other groups/businesses.

The client just notified me that she wants to add an advertisement at the top of her website for some organization, in exchange for the client getting a free membership in that organization. UPDATE: I've just learned membership into this organization is only $150! Who would sell one year's worth of advertisement space at the top of their website for only $150. I hate to say it, but while my client is a really good person, she is batty and has no idea what she's doing. Honestly, sometimes I don't know how she has enough sense to keep her business going - but she has.

First of all, we are redoing the website because it is far too crowded on the front. How on earth are we going to make room for another agency's ad?

Secondly, and the reason I am writing, do I charge her extra to put someone else's code in our site and on our front page?

I do my client's website and products, not that of another company. I don't work for that other organization.

Client is getting free membership, other company is getting ad space - what am I getting, and I am the one doing all the work?

As you can see, I am VERY MUCH against putting an ad on this website.

What do you think? I need advice immediately. I want your full and honest opinion. Am I wrong for wanting to keep the ad out? Should I charge extra, since putting in someone else's ad is not in the fee I have quoted?

My Recommendations

If she is so keen on having ads and links to other websites/organizations in here community I would maybe recommend a seperate page called community partners, but not a ad on her homepage or all pages especially for $150 a year.

If she is not giving in on the idea, and does go forward with putting ads on her pages for this organization, I would not recommend putting their code directly in to her pages for her sake. The reason why I say this is this organization may comeback on her and say her website did not drive $150 work of traffic to their website, wanting the $150 membership fee. I would recommend doing this through a advertising agency, for her protection. This is because if the organization would try this you have proof from the ad agency of how much traffic was generated. It will be better proof then from your analytic software. Also, if she is keen on this deal I would recommend a PPC payment plan, especially if she has a lot of traffic. It makes no sense to have a fixed price when she could be making earning on her effort. Most ad slots are pay per click today.